Oil and gas explorer and producer Carpathian Resources Ltd announced it is conducting investigation on alleged irregularities in some of its past financial transactions.

In a statement to the ASX, Carpathian Resources Board said it has received "information suggesting alleged irregularities regarding certain historic financial transactions".

Carpathian Resources said, "(Its) Board is not in a position to determine whether or not these alleged irregularities are materials. However, the Board has decided to conduct an investigation."

The company said it has instructed its lawyers in Australia and the United States to assist it in investigating the suspected irregularities. Carpathian Resources said it will appoint forensic accountants shortly.

The investigation is expected to take at least six weeks.

Carpathian Resources said it will issue further announcement as soon as the Board is in a position to report to the market.

The company's operations are focused on Central Europe, where it holds a number of oil and gas licenses in the Czech Republic and Slovakia. Carpathian's major projects included the Janovice, Rožnov and Morava oil and/or gas fields, all of which are in the Czech Republic.

Carpathian shares are currently in a trading halt at 5.7 cents.